Any Land Investors Out There?

Financial Advisor · Sacramento, CA · Member since 2019 · 15 posts · 4 votes

Hi BP Community,

I’ve recently been learning lots about land Investing and I was wondering if there are many other land investors here in the BP community. Does anyone else invest in vacant land flipping? If so, is anyone close to Sacramento? I’d love to connect and perhaps meet up over lunch.

Thanks for everyone’s time.

Rob

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Originally posted by @Michael Ealy:

One of my best deals are land deals.

One time I bought 8 parcels of land (I was hoping to buy more) for $500 to $2,000 a parcel at a land auction. I knew a road was about to be built and that's why I bought those parcels. Two and a half years later, I sold each of them for $80,000 to as high as $150,000 a piece.

Ka-ching!

Land can be very profitable if you know where to buy.

Mike,

One thing that keeps me up at night is the deals that were there to be had in Atlanta metro area circa 2011 ish.. finished subdivision selling for 1k per lot.. I bought 14 lots in one subdivision for 3k a lot these were half acres.. with really nice new homes .. Not as good as your deal but we sold them 18 months later for 30 to 40k apiece.. I tried to raise a fund for lots but had no luck.. you know land does not cash flow. But if i could have raised a few million then we could have made 20X on that money easy.

I close next month on a 4 acre in CA i bought for 27k in the mid 90s .. came into the city and got up zoned.. that one is cooking off a t1.9 million cash to a developer.

I spent most of my early years in the land business my dad was a land geek befor the land geek was born.. he roamed most of CA buying tax sales lots and then flipping them on contract which is what most that get into this do.. the lady talking about San Berdo and such those are just high desert lots there there are hundreds of thousands of them.. Lehigh acres in FLA ( Ft. Meyers has hundreds of thousands of lots as well)..

In Oregon we did mainly timber plays so bigger dollars.. one of my star's was a 700 acre tree farm we paid 1.8 for i busted 10 lots off the front half that i sold for about 1.5.. we held the rest of the land logging it gently each year bringing in about 30 to 50k net in log revenue ( commercial thinning is what they call it). we then sold it about 5 years ago to big lumber firm for 3 million .. that was a nice one as well.

they don't call them Timber Barron's for nothing LOL.. its a fun business it really is.

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Adam E.
Fairfield, CA · Member since 2019 · 74 posts · 31 votes
6y
@Robert C.
Mike Nerby with The Nerby Group does Land flipping out of state. Google his name for his contact info :)
0 Reply
Amy Aziz
Specialist · Los Angeles, CA · Member since 2019 · 587 posts · 269 votes
6y
@Robert C. Good Morning! Land flipping is my niche! I am in the LA area but I focus on buy land on the west coast.
0 Reply
Kevin Wilson
Rental Property Investor · Oceanside, CA · Member since 2019 · 121 posts · 58 votes
6y
Interested in this topic as well. No idea where to start though? Is the idea to buy and hold on speculation or should you look to add value by developing a lot and running utilities ? What kind of profits are you seeing with land flipping?
2 Reply
Robert C.
OP
Financial Advisor · Sacramento, CA · Member since 2019 · 15 posts · 4 votes
6y
@Adam Engle-Sorrell thanks for the suggestion. I’ll be sure to reach out to him.
1 Reply
Robert C.
OP
Financial Advisor · Sacramento, CA · Member since 2019 · 15 posts · 4 votes
6y
@Amy Aziz thanks for your response. As I am starting my land investing business are there any particular education tools or land resources that you recommend? Do you usually do land flipping here in CA or out of state?
1 Reply
Robert C.
OP
Financial Advisor · Sacramento, CA · Member since 2019 · 15 posts · 4 votes
6y
@Kevin Wilson actually, those who get into the business usually start with smaller parcels and just flip them. Land flipping can be done at any size parcel. Some as small as $500 and as large as $500,000. The margins/ROI is larger on smaller properties but the benefit is that you can do your due diligence from anywhere and lots of the processes can be automated.
0 Reply
Kevin Wilson
Rental Property Investor · Oceanside, CA · Member since 2019 · 121 posts · 58 votes
6y
@Robert C. Awesome info! Thanks!
0 Reply
Amy Aziz
Specialist · Los Angeles, CA · Member since 2019 · 587 posts · 269 votes
6y
@Robert C. my mentors and I have mailed out to riverside and san bern counties here in CA. We are interested in going up to Lassen county.
I'll message you more details!
0 Reply
Michael Ealy
Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
6y
One of my best deals are land deals.
One time I bought 8 parcels of land (I was hoping to buy more) for $500 to $2,000 a parcel at a land auction. I knew a road was about to be built and that's why I bought those parcels. Two and a half years later, I sold each of them for $80,000 to as high as $150,000 a piece.
Ka-ching!
Land can be very profitable if you know where to buy.
5 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Michael Ealy:
One of my best deals are land deals.
One time I bought 8 parcels of land (I was hoping to buy more) for $500 to $2,000 a parcel at a land auction. I knew a road was about to be built and that's why I bought those parcels. Two and a half years later, I sold each of them for $80,000 to as high as $150,000 a piece.
Ka-ching!
Land can be very profitable if you know where to buy.
Mike,

One thing that keeps me up at night is the deals that were there to be had in Atlanta metro area circa 2011 ish.. finished subdivision selling for 1k per lot.. I bought 14 lots in one subdivision for 3k a lot these were half acres.. with really nice new homes .. Not as good as your deal but we sold them 18 months later for 30 to 40k apiece.. I tried to raise a fund for lots but had no luck.. you know land does not cash flow. But if i could have raised a few million then we could have made 20X on that money easy.

I close next month on a 4 acre in CA i bought for 27k in the mid 90s .. came into the city and got up zoned.. that one is cooking off a t1.9 million cash to a developer.

I spent most of my early years in the land business my dad was a land geek befor the land geek was born.. he roamed most of CA buying tax sales lots and then flipping them on contract which is what most that get into this do.. the lady talking about San Berdo and such those are just high desert lots there there are hundreds of thousands of them.. Lehigh acres in FLA ( Ft. Meyers has hundreds of thousands of lots as well)..

In Oregon we did mainly timber plays so bigger dollars.. one of my star's was a 700 acre tree farm we paid 1.8 for i busted 10 lots off the front half that i sold for about 1.5.. we held the rest of the land logging it gently each year bringing in about 30 to 50k net in log revenue ( commercial thinning is what they call it). we then sold it about 5 years ago to big lumber firm for 3 million .. that was a nice one as well.

they don't call them Timber Barron's for nothing LOL.. its a fun business it really is.

Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
6 Reply
Eric Roloson
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@Jay Hinrichs you are too rad!!! Love to read about your experiences..thanks for sharing. Please keep it up!
I get choked up thinking about the opportunity to be had in Atlanta then. That's A LOT of money left on the table!
Congratulations Jay on the 4 acres in CA! You held and timed perfectly...that was by no accident, assuredly.
If anyone else is like me, people like Jay embody the American dream. I jumped in REI in early 2018 and feel so small around these "giants". He's been a Timber Barron and a whole lot of other things ;) It seems like there is not much he hasn't done over his many years. My plan is to keep sinking my teeth into growing and scaling so at some point I can bring some value to the table in Jay's eyes and do a deal with him.
It's truly amazing how many niches there are in real estate. I have not done any LAND deals yet, they seem VERY fun!
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Eric Roloson:
@Jay Hinrichs you are too rad!!! Love to read about your experiences..thanks for sharing. Please keep it up!
I get choked up thinking about the opportunity to be had in Atlanta then. That's A LOT of money left on the table!
Congratulations Jay on the 4 acres in CA! You held and timed perfectly...that was by no accident, assuredly.
If anyone else is like me, people like Jay embody the American dream. I jumped in REI in early 2018 and feel so small around these "giants". He's been a Timber Barron and a whole lot of other things ;) It seems like there is not much he hasn't done over his many years. My plan is to keep sinking my teeth into growing and scaling so at some point I can bring some value to the table in Jay's eyes and do a deal with him.
It's truly amazing how many niches there are in real estate. I have not done any LAND deals yet, they seem VERY fun!\
it has not been all wine and roses I assure you.. but when you hit a good one its pretty cool.. but Atlanta Man that was a missed opportunity.. but investors had such a If it does not cash flow its not worth anything mentality then.. And to a certain extent they still do.. I just put another big land deal into escrow this week in Yamhill county 360 acres that has it appears 35 historic lots on it. So will see how that one goes.

Podcast Guest on Show #222
JLH Capital Partners51 Review
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3 Reply
Michael Ealy
Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
6y
Originally posted by @Jay Hinrichs:
Originally posted by @Michael Ealy:
One of my best deals are land deals.
One time I bought 8 parcels of land (I was hoping to buy more) for $500 to $2,000 a parcel at a land auction. I knew a road was about to be built and that's why I bought those parcels. Two and a half years later, I sold each of them for $80,000 to as high as $150,000 a piece.
Ka-ching!
Land can be very profitable if you know where to buy.
Mike,

One thing that keeps me up at night is the deals that were there to be had in Atlanta metro area circa 2011 ish.. finished subdivision selling for 1k per lot.. I bought 14 lots in one subdivision for 3k a lot these were half acres.. with really nice new homes .. Not as good as your deal but we sold them 18 months later for 30 to 40k apiece.. I tried to raise a fund for lots but had no luck.. you know land does not cash flow. But if i could have raised a few million then we could have made 20X on that money easy.

I close next month on a 4 acre in CA i bought for 27k in the mid 90s .. came into the city and got up zoned.. that one is cooking off a t1.9 million cash to a developer.

I spent most of my early years in the land business my dad was a land geek befor the land geek was born.. he roamed most of CA buying tax sales lots and then flipping them on contract which is what most that get into this do.. the lady talking about San Berdo and such those are just high desert lots there there are hundreds of thousands of them.. Lehigh acres in FLA ( Ft. Meyers has hundreds of thousands of lots as well)..

In Oregon we did mainly timber plays so bigger dollars.. one of my star's was a 700 acre tree farm we paid 1.8 for i busted 10 lots off the front half that i sold for about 1.5.. we held the rest of the land logging it gently each year bringing in about 30 to 50k net in log revenue ( commercial thinning is what they call it). we then sold it about 5 years ago to big lumber firm for 3 million .. that was a nice one as well.

they don't call them Timber Barron's for nothing LOL.. its a fun business it really is.

Awesome land deals Jay! Congrats.
It's understandable why raising capital for a land acquisition fund is not easy. No cashflow while investors wait unlike apartments. However, like you, some of my sweetest, most profitable deals didn't have cashflow for a couple of years but 10X (or even more) on the money more than makes up for the lack of cashflow.
If I am going to launch a fund that can take advantage of land opportunities, I will have a fund where 80% of it is to acquire existing hotels and apartments so there's cashflow on day 1 and 20% will be more "opportunistic acquisitions" - which will acquire land deals with huge upside to sell in a few years.
I made an offer on a piece of land near Notre Dame University that could have been a sweet deal for me to build a hotel on but we didn't agree on the price. Oh well...next.
0 Reply
Eric Roloson
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@Michael Ealy that's an incredible deal with those 8 parcels! Congrats!!!!
You have some great strategies in place. What kind of time do you invest in land acquistion? Or do you just swoop in on a deal when you see one? Do you look for off-market land/properties or mainly focus on land auctions?
0 Reply
Eric Roloson
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@Jay Hinrichs would you say there is still solid opportunity at tax sales in OR and WA? If so, a good place to start?
0 Reply
Michael Ealy
Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
6y
Originally posted by @Eric Roloson:
@Michael Ealy that's an incredible deal with those 8 parcels! Congrats!!!!
You have some great strategies in place. What kind of time do you invest in land acquistion? Or do you just swoop in on a deal when you see one? Do you look for off-market land/properties or mainly focus on land auctions?

Eric,
Land is not my focus. I focus mainly on apartments and hotel acquisitions. Land to me is more of an "opportunistic" play. I get off-market land deals from brokers nowadays not so much through auctions. I don't like to compete for deals :)
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Eric Roloson:
@Jay Hinrichs would you say there is still solid opportunity at tax sales in OR and WA? If so, a good place to start?
Virtually nothing goes to tax sale in the Willamette valley you need to go to rural areas . and areas were you had large recreational developments that were put in during the post war land boom era.
you will find those in Christmas Valley OR and Klickitat county WA. among others.

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1 Reply
Eric Roloson
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@Michael Ealy I don't like to compete for deals either :) so much more work/stress! In my neck of the woods any property that hits the market with meat on the bone becomes a feeding frenzy which drives up a cost and kills the deal.
What would you recommend doing to establish relationships with brokers? I have rehabbed a couple homes and have a rental. Looking for properties to acquire. Direct mail? Networking tips?
0 Reply
Eric Roloson
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
Thanks @Jay Hinrichs
Will be doing some digging :)
How's Summerlin? Do you work any deals in the area or is it just a nice place to live?
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Eric Roloson:
Thanks @Jay Hinrichs
Will be doing some digging :)
How's Summerlin? Do you work any deals in the area or is it just a nice place to live?
I helped my nephew buy a house in Kelso a few months back and yes it was very competitive.. My wife was a broker in Longview for years and is from Puget island.

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1 Reply
Robert C.
OP
Financial Advisor · Sacramento, CA · Member since 2019 · 15 posts · 4 votes
6y
@Michael Ealy thank you for the encouraging message. It is always nice to know that other investors have found success in new areas you’re contemplating jumping into. Do you find land deals are just an ancillary part of your real estate business now or do you still actively seek out land deals?
0 Reply
Robert C.
OP
Financial Advisor · Sacramento, CA · Member since 2019 · 15 posts · 4 votes
6y
@Jay Hinrichs thank you for the perspective and view of the possibilities land can provide. Do you have any sources of land investing education or tools you’d recommend for someone like myself starting out? I’d love to hear any insights you might have.
0 Reply
Robert C.
OP
Financial Advisor · Sacramento, CA · Member since 2019 · 15 posts · 4 votes
6y
@Michael Ealy Injjst saw this response, my apologies, feel free to disregard my original question. If you have any suggestions for tools, resources, or educational content that your recommend for a young land investor I’d love to get any suggestions. Thank you for your time.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Robert C.:
@Jay Hinrichs thank you for the perspective and view of the possibilities land can provide. Do you have any sources of land investing education or tools you’d recommend for someone like myself starting out? I’d love to hear any insights you might have.
there is about 3 or 4 folks that have the basic training stuff pretty cheap 1 to 2k
jack bosch.
the land geek
also land academy they post on here a lot..
from what i see them do they typically teach to buy tax sale or direct mail to old defunct subdivisions out in the West..
but you can do that anywhere.. i mean i used to do this when i was buying my timber lands in Oregon and we did a lot of land deals in Lake mendo counties..
the theory is shoot out a bunch of low ball cash offers.. close on them.. then resell on terms.. most of the land will have marginal actual value IE building wise.. but people like to own cheap dirt..
Boise cascade built 27 large communites up and down the Sierras my dad sold real estate for BC.. these would include Lake Wildwood
Lake don Pedro.. Oh and there is another one that comes to mind just south of Sacramento.. HIdden Valley lake in Lake county
they would buy props that they could put 3 to 5 thousand lots in.. usually one that they could make their own lake. and a golf course and airport.. PINE MTN Lake is the one i was thinking about.
All these were built in the late 50s to late 60s and sold as recreational retirement communities to folks in LA and SF bay area.. this was the land business in those days..
and this was true in many parts of the west. and of course FLA has millions of platted lots that have never been built on.
And then you have the real old Plats that were done pre 1928 like Lake Co CA.. and high desert of so cal and frankly most cities..
although you have to be careful many cities wont let you build on these lots as they deem them Antiquated lots.. I grew up in it so have more than a passing knowledge of it.
Oh also there is Lake Shastina out of Weed CA.
then A developer his name escapes me Oh i got it Jeff Dennis. he bought large ranchs in CA and called them R ranchs and sold shares to the ranchs kind of like timeshare.. there are half a dozen of those and you will see those deeds go to foreclosure and tax sale sometimes.. there is one in Lake Berryessa.. one way up on the Klamath river. And one Due East of Willows up I 5.. we were actually bidding on that one when Mr. Dennis bought it..

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Ben Dao
Rental Property Investor · Saint Louis, MO · Member since 2016 · 123 posts · 84 votes
6y
@Robert C. I flip land. I only have done a few deals. I do like that I don’t fix anything like I do with my rental properties. I have a parcel near Redding CA right now.
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